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  • Complete list of Working Papers available at October 1990

    15: Macroeconomic Stabilisation, Income Distribution and Poverty: a Preliminary Survey T Addison and L Demery, 1985, £6.00, ISBN 0 85003 094 3 16: Land Tenure Issues in Irrisation Planning Design and Management in Sub- Saharan Africa Mary Tiffen, 1985, £3.00, ISBN 0 85003 096 X 17: Balance of Payments Adjustment and Developing Countries Tony Killick, 1985. £3.00, ISBN 0 85003 097 8 18: The Third Worid's Import Needs and Potential: A European Perspective, Igor Karmiloff, 1986, £6.00, ISBN 0 85003 101 X 19: Macroeconomic Stabilisation in Jamaica: Hie Lessons of Recent Experience Derick Boyd, 1986, £3.00, ISBN 0 85003 102 8 20: Colombia, 1970-85. Management and Consequences of Two Large External Shoclu Juan Jose Echavarria, 1987, £5.00, ISBN 0 85003 109 5 21: Trade and Financing Strategies: A Case Study of Malaysia Mohamed Arif, 1987, £5.00, ISBN 0 85003 108 7 22: Trade and Financing Strategies for Hiailand in the 1980$. Supote ChurumuiuaOttm, 1987, £5.00, ISBN 0 85003 110 9 24: Industrialisation in Sut>-Sataaran Africa: Country case study: Cameroon Igor Karmiloff, 1988, £3.00. ISBN 0 85003 112 5 25: Industrialisation in Sul>-Saharan Africa: Country case study: Zimbabwe Roger Riddell 1988, £3.00, ISBN 0 85003 113 3 26: Industrialisation in Sub-Saharan Africa: Country case study: Zambia Igor Karmiloff, 1988, £3.00, ISBN 0 85003 114 I 27: European Community Trade Barriers to Tropical Agricultural Products Michael Davenport, 1988, £4.00, ISBN 0 85003 117 6 28: Trade and Financing Strategies for the New NICS: the Peru Case Study Jurgen Schuldt L, 1988, £3.00. ISBN 0 85003 118 4 29: The Control of Money Supply in Developing Countries: China, 1949-1988 Anita Saiuonim, 1989, £3.00, ISBN 0 85003 122 2 30: The EfTectiveness of Monetary Policy in Cote d'lvoire Christopher E Lane, 1990, £3.00. ISBN 0 85003 125 7 31: Economic Development and the Adaptive Economy Tony Killick, 1990, £3.50, ISBN 0 85003 126 5 32: Principles of policy for the Adaptive Economy Tony KilUck, 1990, £3.50, ISBN 0 85003 128 1 33: Exchange Rates and Structural Adjustment Tony Killick, 1990. £3.50, ISBN 0 850ra 128 1, 34: Maricets and Govermneiits in Agricultural and Industrial Adjustment Tony Kittidc. 1990, £3.50, ISBN 0 85003 129 X 35: Financial sector polidcs In the adaptive economy Tony Killidk. 1990, £3.50, ISBN 0 85003 131 1 37: Judgbig Succcas: Erahuitlnf NGO Income-Gcnerathig prcjects Ri^er KiddeU, 1990, £3.50, ISBN 0 85003 133 8 3$; ACP Ê mort DiverrifkaUon: the case oT Zhnbabwe Roger RiddeU ISBN 0-85003-133-8, 1990, £3.50 39: Monetary PoUcjr fai Kenya, 1967-88 Tony KilUdc and F M Uwega, 1990, £3.50, ISBN 0 85003 135 4 40: ACP Export Diveniflcatian: Jamaica, Kenya and Ethiopia Christopher Stevens ISBN 0-85003-136-2, 1990, £3.50 41: ACP Export DivcnincaUon: the case of Mauritius

    ' McQueen ISBN 0-85003-137-0, 1990, £3.50 tLAh Econometric Study of Selected MoneUiy Policy Issues 1 Kenya F M Mwega ISBN O-85003-142-7 £3.50

  • 00002813

    Overseas Development Institute

    WORKING PAPER 40

    ACP EXPORT DIVERSIFICATION:

    JAMAICA, KENYA AND ETHIOPIA

    Christopher Stevens

    September 1990

    ISBN 085003 136 2

    OVERSEAS DEVELOPMENT INSTITUTE Regent's College

    Inner Circle, Regent's Park LONDON NW1 4NS

  • Acknowledgements

    ODI Working Papers present in preliminary form work resulting from research undertaken under the auspices of the Institute. Views expressed are those of the authors and do not necessarily reflect the views of ODI. Comments are welcomed and should be addressed directly to the authors.

    This Working Paper is one of five country papers prepared as part of a study of export diversification by the African, Caribbean and Pacific (ACP) signatories of the Lom6 Conventions. The study is in two parts. The first involved an analysis of trade statistics to identify which states have begun to export which non-traditional products. This is reported in McQueen and Stevens [1989]. In the second, fieldwork has been undertaken in a select group of states to identify the story behind the statistics. The results of these country investigations are reported in three Working Papers. Besides this one on Jamaica, Kenya and Ethiopia, two others examine the cases of Zimbabwe (Working Paper 38) and Mauritius (Working Paper 41).

    The overall project is directed at ODI by Christopher Stevens. We are grateful for financial support from the Leverhulme Trust, but they are not responsible for the views expressed here.

  • CONTENTS

    Page

    I. BACKGROUND AND OVERVIEW 1

    I. 1 The Purpose of the Research 1 I. 2 The Choice of Case Studies 2

    II. JAMAICA 3

    II. 1 Non-traditional Exports in the Jamaican Economy 3

    II. 2 The Policy Environment 5 II. 2.1 Jamaican government policies 5 II. 2.2 US import policy 8 II. 2.3 The EC 12 II. 2.4 Canada's Caribcan 15

    II. 3 The Performance of Qothing Exports 15 II. 4 Other Non-traditional Exports to the EC 19 II. 5 Constraints on Production 20 II. 6 Conclusions on Jamaica 21

    n i . KENYA 22

    III. 1 The Position of the EC in Kenyan Exports 22 III. l . l Total exports 22 III.1.2 Non-traditional exports 23

    111.2 The Policy Environment 24 111.2.1 Kenyan government policies 24 111.2.2 The EC 27

    111.3 Horticulture 28 III.3.1 Export performance 28 ni.3.2 Production characteristics 35 111.3.3 Major competitors 36

    111.4 Canned Pineapple 39 111.5 Qothing and Leather 40

    III.5.1 Clothing 41 IIL5.2 Leather 42

    111.6 Conclusions on Kenya 42

  • Page

    IV. ETHIOPU 44

    IV. 1 The Macroeconomic Framework 44 rv.2 Relative Importance of Non-traditional Exports 44

    IV.2.1 nothing 46 rv.2.2 Fruit and Vegetables 51

    IV.3 Conclusion on Ethiopia 53

    V. GENERAL CONCLUSIONS 54

    REFERENCES 57

  • LIST OF TABLES AND FIGURES

    Tables P9«e

    1. Manufacturing in the Jamaican economy 4 2. Jamaica: economic indicators 4 3. The JamaicaAJSA Bilateral Textile Trade Agreement 11 4. Jamaican clothing exports, by destination 16 5. Major Jamaican apparel exporters, 1987 18 6. Lom6 rV preferences for fresh (or chilled) fruit and vegetables 29 7. Kenyan exports of fresh horticultural produce, 1973-1988 31 8. Geographical distribution of Kenyan fresh fruit and vegetable exports,

    1988/89, by volume 33 9. Geographical distribution of Kenyan green bean exports,

    1988/89, by volume 33 10. Geographical distribution of Kenyan cut flower exports,

    1988/89, by volume 33 11. Seasonal distribution of Kenyan exports of all fresh fruit

    and vegetables, green beans and cut flowers, 1988/89 34 12. EC imports of selected Kenyan non-traditional products 37 13. Sources of supply to the UK horticulture market 38 14. Exports of canned pineapple, 1971-88 40 15. Share of selected non-traditional exports to EC in total exports,

    1980-86 45 16. Value of industrial production in constant 1978/79 prices 47 17. Value and costs of production in Ethiopian public and private

    clothing and textile industry, 1985/86 47 18. Employment in Ethiopian textiles and clothing, 1985/86 49 19. Domestic sales and exports of textiles and clothing, 1985/86 49 20. Exports of clothing to the EC, 1981-87 50 21. Cost of domestic and imported raw materials for clothing

    and textile industry, 1985/86 50 22. Exports of flowers and fresh vegetables to the EC, 1981-87 52

  • Figures Page

    1. Jamaican clothiing exports to USA and EC, 1979-88 16 2. Jamaican clotliing exports, by origin and type 17 3. The share of Kenyan exports destined for the EC, 1973-87 22 4. 'Non-traditional' and total Kenyan exports to the EC, 1976-87 23 5. Manufacturing exports and imports 25 6. Share in merchandise exports of coffee, tea and horticulture,

    1983-88 31 7. Growth of 'non-traditional' and total exports to the EC

    in current value terms, 1976-87 46

  • LIST OF ACRONYMS

    ACP African, Caribbean and Pacific CAP Common Agricultural Policy Caricom The Caribbean Community

    CBI Caribbean Basin Initiative CMT 'Cut, Make and Trim' DCL Designated Consultation Level EC European Community EFVME Ethiopian Fruit and Vegetable Marketing Enterprise EIEA Export Industry Encouragement Act GAL Guaranteed Access Level GDP Gross Domestic Product HCDA Horticultural Crops Development Authority IMF International Monetary Fund JAMPRO Jamaica Promotions Limited JIDC Jamaica Industrial Development Corporation

    JNEC Jamaica National Export Corporation JNIP Jamaica National Investment Promotion Limited KETO Kenya External Trade Organisation MFA Multifibre Arrangement

    NIP National Indicative Programme

    NTC National Textile Corporation

    SL Specific Limitation

    USAID United States Agency for International Development

    VER Voluntary Export Restraint

  • I. BACKGROUND AND OVERVIEW

    1.1 The Purpose of the Research

    The 1980s was an inauspicious decade for the trade of the African, Caribbean and Pacific (ACP) signatories of the Lom6 Conventions; in fact, for many of them it was little short of disastrous. As a group, their share of European Community (EC) imports fell sharply and their economic situation worsened dramatically. Clearly, whatever the merits of Lom6 II (1980-85) and Lom6 III (1985-1990) they were no match for the negative economic forces that bore down on many ACP states.

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